Norden, Norden, L. - Erasmus Research Institute of Management (ERIM), … - 2015
informationally opaque, more risky, more financially constrained, and more bank-dependent than large firms, which creates serious … obtain more credit and/or lower loan rates under relationship lending. Furthermore, bank competition makes benefits for … borrowers more likely. The second conclusion is that trade credit has limited scope to replace bank debt when the latter is …